Yes indeed it will be, oil is headed below $50 a barrel, I actually think it could even drop further, I think with a global recession now here you could see oil drop as low as $30-$40. Gas could easily be back under $2.50 and if we get lucky maybe back under $2.00 where it really belongs. You will be lucky to see oil back at $100 in 3 years, maybe even 5 years, maybe never again.
This current crisis is laying the foundation for an oil shock that will blow u away in the next few years. Massive pullbacks in capex on E&P, will lead to an extreme tightening of the S/D balance going forward and require massive price rationing. In laymans terms- high prices cure high prices, low prices cure low prices.
It already is under 2.50. In Portland, TX at the murphy gas station at 2045 US-181 & Broadway, the price of gas is 2.00 per gallon. (Cheapest in the country) There are 4 other stations in that same town selling gas for 2.04 per gallon. In Oklahoma City, OK there are about 15 gas stations selling for under 2.08 per gallon
As all knows well....cheap oil ...still means energy dependence.... Instead of getting hooked on heroin again.....cheaper alternative energy that would keep money at home...along with a new industry dominated by the US....is of paramount importance.... Time for "The Sand People" and the "Little Red Man" to take a bow..... New energy....new world wide stock market...... Just do it....
agree 100 %... DXO is a very cheap way to be exposed to oil. Size your positions and limit your risk and it is a no brainer. Give it lots of time though....
aarg. The OP was supposed to show an image of really cheap gas, but somehow it didn't register. Anyway, here is a very old picture of a gas station, telling it like it is (the breakdown of the cost of a gallon):